10 Large Caps That Operate With Zero Debt and Might Dodge the Downgrade Fallout

In some ways it’s still hard to believe that US debt was downgraded for the first time ever. This is likely going to have a huge impact on the markets and the global economy. Given this truly unique situation we decided to look for potential investments among larger companies that have low to manageable debt levels.

We ran a screen for companies that were trading with a debt ratio of .2 or less. Fortunately, we came up with more than a few companies that operate with a debt ratio of zero. From this pool we screened for large cap companies (X>$10B), which, in our view might be able to withstand the coming economic volatility better given their size.

GE is a prototypical US conglomerate that builds everything ranging from jet engines to power plants to light bulbs and more. The firm has a debt ratio of 0. In the last month GE has lost 13.33% in value.

Short Interest Note: The short interest for the firm is .6% as of 07/15/2011.

The firm primarily generates revenue through investment advisory services and subsidiaries as a financial services holding company. The firm has a debt ratio of 0. In the last month TROW has lost 15.56% in value.

Short Interest Note:

The short interest for the firm is 2.00% as of 07/15/2011.

We hope this helps investors as they do their own homework and due diligence on large cap companies with no debt.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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